Rex Energy Cuts Deal to Export Ethane, Propane to Europe via Philly

Rex EnergyRex Energy has stepped up to be the second Marcellus/Utica driller to cut a deal using the Mariner East pipeline to ship ethane, propane and (eventually) butane from western PA to the Marcus Hook refinery in Philadelphia, and from there load it onto ships heading to (in this case) Europe. Range Resources was the first driller to use Sunoco Logistics Partners’ Mariner East pipeline to send ethane to Marcus Hook and on to exporting (see Range Resources Ethane Heading to Marcus Hook Beginning February). The Swiss-based company INEOS cut a deal to buy Range Resources ethane to power both Norwegian and Scottish cracker plants (see Cracker Plant in Scotland “Brought Back to Life” Thx to Marcellus Ethane). Now, Rex Energy has cut a deal with INEOS to buy ethane, propane and butane, according to an announcement yesterday by Rex. The particulars (i.e. financial aspects) of the deal were not announced…
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Lifeline: Chesapeake’s $4B Line of Credit Reaffirmed by Banks

Chesapeake EnergyDon’t tell Crazy Bernie Sanders, but apparently Big Banks (like the ones he wants to dissolve) believe Chesapeake Energy is (like the banks themselves) “too big to fail.” Yesterday Chesapeake’s Big Bank backers reaffirmed the company’s $4 billion line of credit. Twice each year oil and gas company holdings/assets are evaluated and a determination made of their value–because those holdings/assets are used as collateral should a company like Chesapeake go bankrupt. Which lately has seemed like a distinct possibility (see Chesapeake Energy: We’re Not Filing for Bankruptcy…Yet). Yesterday’s action pretty much ensures Chessy will stay out of bankruptcy court, at least until 2017, because the company has the ability to borrow oceans-full of money–up to $4 billion. In an unusual move, Chesapeake’s lenders have postponed another such “redetermination” until June 2017, more than a year from now…
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EIA April DPR: Utica Production Slows, Marcellus Loss Slows

EIAYesterday MDN’s favorite government agency, the U.S. Energy Information Administration (EIA), issued our favorite monthly report–the Drilling Productivity Report (DPR). The DPR is the EIA’s best guess, based on expert data crunchers, as to how much each of the U.S.’s seven major shale plays will produce for both oil and natural gas in the coming month. First interesting observation about the report just issued: The rate of production decline in the Marcellus has gone down. That is, although the Marcellus is predicted to produce less shale gas in May than it will in April, the amount of less production has decreased–meaning we may be close to equilibrium where the Marcellus produces around the same amount of gas each month, month after month. Second interesting observation: Utica natgas production has continued to grow each month while the other six plays have declined in production each month. The EIA is predicting that in May the Utica will not grow by much–just 1 million cubic feet per day of additional production. Essentially, Utica production of natgas is now flat month over month. Will it also go in the red when the next monthly report comes out?…
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Crazy Bernie Comes to Binghamton, Launches Natl Anti-Fracking Ad

Bernie Sanders
Crazy Bernie

Senile old Communist Bernie Sanders came to Binghamton, NY yesterday (where MDN is written and published) to campaign in “upstate” New York. No, we didn’t bother to go and see him. (We think vapid college kids like him because he reminds them of the grandfather they never had.) Sanders took the occasion of his visit to Binghamton to call for a national campaign to ban ALL fracking. Essentially he wants to shut down the entire oil and gas industry–an industry that’s been fracking for more than 40 years in this country. He’s not only senile–he’s dangerous. Or he would be dangerous if he ever got elected, which of course isn’t going to happen. Sanders launched a new 30-second Big Green TV advertisement (see it below) narrated by Susan Sarandon (i.e. Big Hollywood) to complain about Big Oil. Isn’t that rich? What a screwball…
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More on Cornerstone Pipeline – Batched Fluids, Connecting WV?

Cornerstone PipelineLast week MDN updated you on progress (or lack thereof) for Marathon’s Cornerstone Pipeline project–a 50-mile liquids pipeline connecting several processing plants in Ohio to Marathon’s refinery in Canton (see Cornerstone Pipeline Slightly Delayed, Construction Begins in May). We now have even more details about the project after Marathon officials briefed area reporters. Among the interesting tidbits: at various times during the day the pipeline will batch fluids and flow either natural gasoline or condensate. Also, after the current plan is done and the pipeline is operational (this fall), Marathon hopes to explore connecting a couple of WV processing facilities to the pipeline–one in Moundsville and another in Natrium…
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List of 2016 Shale Gas Innovation Contest Finalists

SGICCOn May 18, the Ben Franklin Shale Gas Innovation & Commercialization Center (SGICC) will announce four $20,000 winners of this year’s Shale Gas Innovation Contest. In addition to showcasing the 12 finalists, this year’s event will also feature a Poster Contest highlighting research underway related to the oil and gas sector–from four major regional research universities. Below we have the list of all 12 finalists with a description of their qualifying technologies. Among the list is one of our favorite companies, HalenHardy, a previous winner of another SGICC award for Shale Gas Environmental, Health, & Safety (see HalenHardy Wins Ben Franklin EHS Award for Silica Air Shower). HalenHardy is headed by serial and intrepid entrepreneur (and MDN friend) Donny Beaver. Good luck Donny!…
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Update on EdgeMarc – 53K Acres Split Between Marcellus & Utica

EdgeMarc EnergyLast week the Canton Regional Chamber of Commerce and co-hosted the Utica Upstream conference at the Pro Football Hall of Fame in Canton, OH. MDN previously gathered up reported comments from the person who seemed to steal the show, Maria Cortez of energy research firm/consultant Wood Mackenzie (see Utica Event: OH Landowners Will Lose $6.5B in 5 Yrs, NEXUS Nixed). She predicted the NEXUS pipeline will not get built. However, there were a number of other interesting speakers at the event. One of them was Callum Streeter, Chief Operating Officer at EdgeMarc Energy Holdings (driller based in Canonsburg, PA). EdgeMarc drills in both PA and in OH. Streeter gave a good overview of his company. EdgeMarc’s leased acreage is split just about 50/50 between Marcellus and Utica…
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Syracuse U Study Finds Methane Preexists in Most Water Wells

Syracuse UniversityNot long ago researchers at the University of Cincinnati that found fracking in Carroll County, OH taking place near water wells did not affect those wells (see Antis Not Happy with Results of OH Fracking Study They Funded). You would think those who claim they care (more than you and me) about the environment would be thrilled to learn that Mom Earth is not being harmed. But no. The anti-fossil fuel nutters funding the study promptly cut off any more funds for the researchers (see Anti Groups Abruptly Cut Funding for OH Fracking Study). A month later and another research study has been released–this one from Syracuse University. The new study, titled “Dissolved methane in Shallow groundwater of the Appalachian Basin: Results from the Chesapeake Energy predrilling geochemical database,” finds by analyzing 19,278 water samples (including samples from wells in Ohio) the same thing the Cinci study found: methane already exists in many water wells, in large quantities, long before any drilling ever happens. That’s bad news for anti-fossil fuelers. Science and facts just keep getting in the way of the fictional fairy tales they tell themselves…
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Shell CEO @ LNG18: Working Hard to Lower LNG Costs

Ben van Beurden
Ben van Beurden, Shell CEO

In April 2015 when supermajor Royal Dutch Shell announced it wanted to buy out BG and merge the two companies–the biggest such merger since Exxon merged with Mobil–we told you the buyout/merger was all about LNG (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). In February, Shell consummated the deal with BG (see Shell & BG One Company After Today, Shell Ponies Up $14.4B Cash). Earlier today Shell CEO Ben van Beurden took the stage at the LNG18 conference in Perth, Australia. van Beurden’s talk was, as you can imagine, about LNG–liquefied natural gas–and how Shell is working to lower costs in engineering and construction of LNG facilities. That is, van Beurden confirmed what everyone already knew: LNG is the future of Shell…
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From Roughneck to Art Deco Artist? Making a Living Post-Bust

cutting jobsWe don’t have to tell you it’s bad out there in the oil and gas patch. Hundreds of thousands of jobs have disappeared in the last year or so. Many workers are on unemployment. Some have transitioned to other jobs within the oil and gas industry–many to other industries completely. But there’s one guy–a former roughneck–who has transitioned to a job we never imagined. He creates Art Deco pieces by welding old machinery and leftover whatever together–into things like tables. Apparently he makes enough money from it to pay the bills, including the salary of one employee. He does admit, however, that he’s biding his time until the o&g industry turns around again. Meet a unique 50-something guy in Ohio who went from roughneck to artist…
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HBK 2016 Energy Assessment, Predictions for OH/PA on Pipes, Taxes

HBK EnergyCPA/consulting firm HBK (Hill, Barth & King) is fresh out with their 2016 Energy Assessment–an analysis of energy trends, opportunities, challenges and risks. In the assessment (full copy below) HBK Energy Advisors (a division of HBK) weighs in on issues like Obama’s odious Clean Power Plan, renewable energy, LNG and more. Of particular interest to MDN is a series of predictions made not in the official assessment, but in an accompanying blog post on the HBK website. The analysts make a series of predictions for Pennsylvania, Ohio, New Jersey and Florida. The first prediction for Ohio is that pipeline work in the Buckeye State will increase, mostly due to the NEXUS pipeline. Which we find interesting. Just last week we told you an analyst from Wood Mackenzie predicted the NEXUS won’t get built (see Utica Event: OH Landowners Will Lose $6.5B in 5 Yrs, NEXUS Nixed). Now we have another analyst/company saying it will get built! Have a look at HBK’s predictions and see if you agree with them…
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Marcellus & Utica Shale Story Links: Tue, Apr 12, 2016

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: NY primary a big fracking deal; Utica wells now using 12 million lbs of sand; OH inspectors go from 40 to 120; Mass. Dems oppose pipelines, again; life without natgas is unimaginable; KPMG says o&g mergers smaller in 2016; GPA adds Midstream to its name; near-zero NOx engine on the way; natgas production about to plummet; and more!
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